Cash-Out Refinance Calculator
How much cash you can take out, and your new payment
- Most cash you could take outat 80% loan-to-value, after costs
- $138,000
- New loan amountbalance + cash + closing costs
- $309,278
- Closing costsadded to the loan
- $9,278
- Loan-to-value after
- 61.9%
- Equity left
- $190,722
Free to compare. No obligation.
Estimate, not a loan offer. Cash-out limits and rates depend on the loan program, credit and lender. We may earn a commission when you click. It does not change your estimate. How we calculate · How we make money
| Current loan | Cash-out loan | |
|---|---|---|
| Balance | $250,000 | $309,278 |
| Rate | 6.5% | 7% |
| Monthly payment | $1,688.02 | $2,057.64 |
| Interest left to pay | $256,405 | $431,471 |
Your new rate sets the cost of the cash
The new rate above is an example. Compare cash-out refinance offers to see your real rate and closing costs.
Free to compare. No obligation.
How a cash-out refinance works
A cash-out refinance replaces your mortgage with a larger one and pays you the difference in cash. Most lenders cap the new loan at about 80% of your home's value for conventional loans, and closing costs usually come out of the new loan too. This calculator assumes they're added to the loan.
In the example, a $500,000 home with a $250,000 balance could support up to $400,000 at 80%. After 3% closing costs, that leaves up to about $138,000 in cash. Taking $50,000 makes the new loan about $309,000, and at 7% for 30 years the payment rises from about $1,688 to about $2,058.
Cash-out refinance vs. a home equity loan or HELOC
- Cash-out refinance changes the rate on your whole balance. It tends to make sense when the new rate is close to, or below, your current rate.
- A home equity loan or HELOC leaves your current mortgage alone. If your current rate is low, borrowing only the extra amount is often cheaper, even at a higher rate.
To compare, add up the total monthly cost of each option and the total interest. The table above shows the interest left on your current loan next to the interest on the new one.
Things to check
- The term reset. Starting a new 30-year loan stretches your payoff date.
- Closing costs. Typically 2% to 5% of the new loan. Rolling them in means paying interest on them.
- What the cash is for. Turning short-term spending into 30 years of mortgage debt is expensive.
Frequently asked questions
What is a cash-out refinance?
A new, larger mortgage that pays off your current one and gives you the difference in cash. Your whole balance moves to the new loan's rate and term.
How much cash can I get from a cash-out refinance?
Most conventional cash-out loans are capped at about 80% of the home's value, minus your current balance and closing costs. On a $500,000 home with a $250,000 balance and 3% closing costs, that's up to about $138,000.
Is a cash-out refinance a good idea?
It can be when the new rate is close to or lower than your current rate and the cash goes to something lasting, like a renovation or paying off high-rate debt. If your current rate is much lower, a home equity loan or HELOC on just the extra amount often costs less.
Are cash-out refinance rates higher?
Often slightly, because lenders see more risk when you take equity out. The rate also depends on your credit and how much of the home's value you borrow.